I'll personally have to side with VD on this one. BurstNET has a really weird TOS as far as invoices go, and overdue invoices go. Their end of billing is a complete disgrace.
You guys that are sticking behind VD here are way off....
I say that, knowing some of the specifics behind both of the disasters from VD, including the amounts they abandoned and walked out on in past-due funds from GoRack
Also we have a great relationship with their Leasing Vendor. Like BurstNet we also frequently refer smaller hosts to them and help smaller colocation clients obtain financing to grow. A simple fact is leasing companies DO NOT want to take back hardware, often times before taking the actions of repossession they will contact a partner, such as ourselves (without disclosing the client in trouble) letting us know they will be taking back X,Y,Z would we be interested in taking the hardware. Within the last month, during a visit to our offices the leasing company let us know they had a significant client in the "north east" that was significantly behind and they were starting to take action. We had asked them to make an introduction as we may be interested in assuming the assets (with client approval) that client never followed up
Additionally, I know what things cost (the servers), space, power, network, etc.
There is no secret sauce here, you cannot over-subscribe physical assets or your financing... things have costs you cannot avoid. Their costs simply were greater than their incoming revenue.
Their initial launch of the $49 E3 would have been great as a marketing promotion of a limited inventory to use as a loss leader to build brand identity. Unfortunately they carried that through as a standard product which is simply unsustainable.